The Standard Investment Bank (SIB) has moved to have Capital Markets Authority’s (CMA) voice after questions of the practicality of its forex trading product, Mansa X.
Mansa X, launched in January 2019, promised a 24 percent returns on investment to investors.
Kahawa Tungu questioned how Mansa X was able to guarantee such returns, at a time the market they claim to be investing in – offshore and currencies – are under-performing. Kahawa Tungu also asked that MansaX releases a schedule of their trades and investments that support the 24% return.
Among the asset classes they list include currencies, precious metals, commodities, cash and cash equivalents, derivatives, single stocks and stock indices.
Also, the benchmark lending rate for the Central Bank of Kenya (CBK) is 7%, while the average lending rate in the market is around 13 percent per anum.
Mansa X lacks tangible assets that would guarantee the safety of monies invested by Kenyans.
Read: Where Do They Invest? Debunking SIB’s Mansa X, The Online Forex Trading Platform That Looks Like A Ponzi Scheme
Despite the questions being directed to the managers at the Standard Investment Bank, it is the CMA that responded through an article published by the Nation , just giving an assurance that “Mansa X is compliant”.
“In line with our consumer protection mandate, we assure all stakeholders including investors that the SIB operations under the Money Manager licence are in compliance. We also undertake regular monitoring and surveillance of all licenced entities. We confirm that the compliance levels of the operations of SIB under the Money Manager licence meet the standards,” said CMA acting CEO Wyckliffe Shamiah.
What interests does Shamiah have in Mansa X that he is taking a role that should be taken by the company management? And where was Shamiah and CMA when Amama Money Market Fund investors, Uchumi and Kenya Airways investors lost their monies?
He further explains, “SIB also communicates clients’ buy and sell order positions through a licensed online forex trading broker, to meet clients’ investment goals. The money manager conducts financial analysis and monitors foreign exchange portfolio investments on behalf of its clients.” What Kahawa Tungu is asking for us a copy of the trades to show that they can make 24% per annum. In our previous article , we revealed that Mansa X does not list even a single tangible asset in their name, which investors can use to recover their money in case the […]
